Definition of "Commercial Paper"

Short-term obligations with maturities ranging from 2 to 270 days issued by banks, corporations and other borrowers to investors with large temporary cash positions. Such instruments are unsecured and usually discounted, but are usually interest bearing.

Debt instruments that are issued by established corporations to meet short term financing needs. Such instruments are unsecured and have maturities ranging from 2 to 270 days. Commercial paper is rated by Standard & Poor's and Moody's.